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Economy
Mahesh

27/07/22 05:32 AM IST

Enhanced export credit risk insurance cover scheme

In News 
  • ECGC has introduced a new scheme to provide enhanced export credit risk insurance cover to the extent of 90% to support small exporters under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB- WTPC & PS).
Features of the Scheme 
  • The enhanced cover shall be available for manufacturer- exporters availing fund-based export credit working capital limit up to ₹ 20 crore (i.e., total Packaging Credit and Post Shipment limit per exporter/exporter-group) excluding the Gems,  Jewellery & Diamond sector and merchant exporters/traders.
  • This new scheme will enable the banks holding ECGC’s WT-ECIB cover to explore the possibility of reducing interest rates further so that all the stakeholders are benefitted.
  • The enhanced cover percentage shall be made available to State Bank of India as per the previous year’s premium rate in view of its favourable claim premium ratio. However, for other Banks there may be a moderate increase in the prevailing premium rates.
  • ECGC had extended support to exports amounting to Rs.6.18 lakh crore in the last FY 2021-22. 
Significance 
  • The scheme is expected to benefit a number of small-scale exporters availing of export credit with banks which hold the ECGC WT-ECIB covers.
  • This will also enable the small exporters to explore new markets/new buyers and diversify their existing product portfolio competitively.
Source- PIB 

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